Curefoods raises ₹160 crore via pre-IPO placement from Binny Bansal’s 3State Ventures
The deal involves 1.28 crore equity shares priced at ₹124 each
Founder Ankit Nagori remains the largest shareholder, holding over 17%
Cloud kitchens operator Curefoods India has raised ₹160 crore in a pre-IPO placement from Flipkart cofounder Binny Bansal’s 3State Ventures. The IPO-bound company, in an official statement, said that its board and shareholders approved an allotment of 1.28 crore equity shares at ₹124 per share to 3State Ventures earlier this month.
It is pertinent to note that 3State Ventures was the second biggest stakeholder in Curefoods. Previously, founder Ankit Nagori was the biggest stakeholder with a 17.3% stake prior to this funding round.
In 2023, Bansal’s Three State Ventures invested ₹240 crore via primary and secondary equity and debt in the start-up. Nagori, the founder of Curefoods, was previously the former executive of Flipkart. His current Bengaluru-based start-up faces competition from Biriyani by Kilo, EatClub, Rebel Foods, and more.
Founded in 2020 by former Flipkart executive Nagori, Curefoods offers a variety of brands such as EatFit, Cake Zone, Frozen Bottle, Sharied Bhai Biryani, Nomad Pizza, and others.
It is an internet-driven multi-brand food services company offering comprehensive cuisines. Its multi-channel approach includes providing food offerings to customers under its brands through delivery and non-delivery channels, comprising cloud kitchens, kiosks, and restaurants.
In June, the company had filed its DRHP (draft red herring prospectus) with market regulator Sebi (Securities and Exchange Board of India) for a proposed IPO comprising a fresh issue of up to ₹800 crore and an offer for sale (OFS) of 4.08 crore equity shares by existing shareholders.
As part of the OFS, Curefit Healthcare, Iron Pillar PCC, Crimson Winter, Accel India V, Chiratae Ventures India Fund IV, Global eCommerce Consolidation Fund and Alteria Capital Fund will be offloading shares.
The DRHP revealed that the net proceeds from the fresh issue will be deployed towards expansion of cloud kitchens, kiosks, restaurants and related infrastructure; prepayment or repayment of certain borrowings; investment in subsidiary Fan Hospitality; funding working capital requirements, and general corporate purposes.
JM Financial Limited, IIFL Capital Services Limited (formerly known as IIFL Securities Limited) and Nuvama Wealth Management Limited are the book running lead managers to the issue.
